If you hold shares or ETFs, you are not only involved in the price development but often also in the direct success of the company. Here you will learn how BISON handles profit distributions (dividends) and corporate changes (corporate actions).
Distribution - Receiving Dividends
A dividend is a profit distribution by a company to its shareholders. Some ETFs also regularly distribute earnings. The amount and frequency of the dividend are determined at the usually annual general meeting.
Record Date (Ex-Dividend Date): To receive a dividend payment from German companies, you must hold the respective share in your BISON portfolio until the end of the record date (usually the day of the general meeting). For dividend payments from foreign companies, please refer to the quarterly reports or the investor relations page of the respective company.
Payment: You do not need to do anything further. As soon as a company or an ETF distributes a dividend, the corresponding amount will be automatically credited to your BISON Euro balance on the payment date set by the company. The value date of the dividend may be delayed, depending on the distributing company.
Currency: The credit is always conveniently made in Euro. If a foreign company distributes in another currency (e.g. US dollars), BISON automatically carries out the currency conversion for you.
Distributing vs. Accumulating ETFs: While distributing ETFs regularly transfer profits to your settlement account, accumulating ETFs retain the profits and automatically reinvest them. This increases the value of your ETF share.
For questions about dividends: Contact form
Right to Vote - Participation in the General Meeting
As a shareholder, you theoretically have the right to participate in the company's annual general meeting (AGM) and vote there.
If you are interested in attending a general meeting, we will notify you in good time as soon as such a meeting is relevant or suitable for you. We ensure that you receive all the necessary information to be well prepared and to plan your participation optimally. This way you will not miss any important dates and can actively participate in the decisions that are important to you.
Changes - Stock Splits and Capital Increases
Companies can make decisions that affect the structure of your shares (so-called corporate actions). BISON takes care of the smooth technical processing in the background.
Stock Split: If a share has become visually too expensive, the company can split it (e.g. in a ratio of 1:10). You then have 10 times as many shares in your portfolio, but the price per share is only one tenth as high. The total value of your investment remains exactly the same. BISON automatically adjusts the number of shares in your app.
Reverse Split: The opposite of a stock split is a reverse split. In a reverse split, existing shares are exchanged for a smaller number of shares with a higher nominal value. For you, this means that after a reverse split you own fewer shares of the company, but your share in the company remains the same, as the respective share price increases according to the exchange ratio.
Capital Increase for Cash: The company issues new shares, so that new equity capital flows into the company. To prevent the ownership share of existing shareholders from being diluted, they receive subscription rights, which entitle them to a proportionate allocation of the new shares according to their share of the previous capital.
ISIN Change: Securities have a security identification number (WKN and ISIN), which occasionally changes. The name usually remains the same, but the security is booked out with the old identification number and booked in with the new one. The exchange usually takes place at a ratio of 1:1 but may differ in individual cases.
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Merger of Two Companies: In a merger, two stock corporations combine into one. Shares are booked in and out, restructuring your shareholdings. If subscription rights with options are involved, we will inform you about them.
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Spin-Off: A spin-off refers to the separation of part of a stock corporation as an independent corporation. As a result, the original share loses value. Shareholders usually receive shares of the new company or subscription rights as compensation. For you, this means that you receive shares or subscription rights of the new company. If a spin-off occurs in a security you hold, we will inform you about it.
How do I participate in corporate actions?
- Information about upcoming corporate actions (and general meetings) in your BISON mailbox
- Download and complete the document fully
- Send it on time to the BISON Support
Note: Please observe the deadlines stated in the document! Unfortunately, we cannot consider instructions that do not reach us in good time!
For questions about corporate actions: Contact form